04 December 2008

While on the topic of domain names and since we are digging in the archives.

Here is a report of a decision from the Alberta Court of Queens Bench (actual case can be found here). It seems a former employee, displeased with his former employer, registered the .ca domain name that was identical to the .com domain name. He then re-directed the traffic to the .ca name to his new employer's website.

Not satisfied with that result apparently, he then decided to route traffic to the .ca name to a pornographic website.

And then he got the former employer's attention ....in the form of a law suit.

The court awarded the former employer $15,000 in damages. A modest sum by any stretch of the imagination. However, at least there was a judgment.

Now, the lesson to be learned here for all the disgruntled former employees is this - don't this this at home kids. Unless of course you want to lighten your wallet.

For the employers - don't be afraid to take on former employees who want to tarnish your reputation.

Having said all that, legitimate critisicm is still valid and it is perfectly fine to create a website to critisize some company, as long as it is on good taste and the critisicms are true. (There is a bit more to it than that - but the really, really important part is that the criticisms must be true). Too bad the Parliament of Canada did not operate on the same principle. I know, I know - there is a good argument for the current system of parliamentary immunity.

21 October 2008

Here is a classic
situation - a person has a really good idea, they make some prototypes, refine
the product, do some testing, and ultimately a fascinating widget comes out at
the other end.

The individual, who
is generally not rich, then faces the all too frequent problem - how to bring
the product to market?

One of the primary
problems with going to a large retailer is the power disparity between the two
sides and, equally as important, there is the possibility the retailer could
simply steal the idea and manufacture the product itself. This happens more than
you might imagine.

One way to help
reduce this risk is to ask prospective partners to enter into confidentiality
agreements. The problem with this is simply that most large retailers will
simply say no, and move on to the next person.

One way around the
problem is to fully document the inventive process and have someone with no
stake in the matter participate by reviewing all of your notes and signing each
page of your notebook (you should be keeping a notebook with respect to the
inventive process).

Another good
solution is to file a so-called provisional patent, if the product is capable of being
patented - something you will have to get advise on, or file an industrial
design if it is here in Canada. An industrial design will protect the aesthetic
characteristics of the product but not the functional characteristics. Please
keep in mind that industrial designs are generally not all that
powerful.

If you are peddling
your idea to companies in Canada, the maintenance of a notebook may not be as
helpful as it would be in the United States (the US is a first to conceive
jurisdiction, as opposed to Canada, which is a first patent jurisdiction), but
it does provide some measure of ownership.

The final
possibility, if the company you are pitching the idea to does not want to sign a
confidentiality agreement, is to share as much of the idea as possible without
disclosing the essence of it. This also has the benefit of providing a "hook"
with which you can reel in the prospect.

Keep in mind, as an
inventor, that consumer demand for new products is out pacing the ability of
large companies to come up with marketable ideas. The key to success is making
sure your approach and your pitch is as slick as possible.

The next step is to
create what is known as a "sell sheet". This is a one page document of your
product that outlines its benefits, your target audience, and its projected
profits. Your name and contact information should be on this
sheet.

Once your sell sheet
is ready, develop a list of manufacturers that target your ideal customer and
make some more products. Find the name and number for the director of marketing
or sales and call them telling them you are a product developer with a great
idea. Do NOT say you are an inventor. In your pitch (which should be very
brief) concisely state the idea, the profit potential, comparative advantages
and a timeline for results. Offer to send the individual the sell sheet. Then
be persistent about following up.

02 July 2008

Everyone knows what Crocs look like - even if you hate them as an abomination of fashion (as I do), they are so prevalant that virtually anyone who goes out in public will have seen them by now.

Anything successful produces imitations. That is the nature of business. Depending ont he type of imitation and the nature of the rights obtained by the producer of the original product, legal disputes can arise.

Well, it seems that Holey Soles has produced a shoe that Crocs asserts is so close in design to Crocs shoes that consumers will be fooled into thinking shoes produced by the former originate from the latter.

And so they fight...

In a recent round, Holey tried to have Crocs lawsuit thrown out because it said Crocs had no legal basis for suing it. Crocs had alleged violations under the Trade-marks Act (what is called a distinguishing guise, or "trade dress" in the USA - think the shape of the old Coke bottle) and under the Copyright Act (claiming the shape of the shoe or some part of it is artistic in nature and subject to copyright).

The court shut Holey Soles down, stating that the issues needed to be examined at a full blown trial, rather than in a summary fashion.

It remains to be seen how all of this will play itself out, especially given the collapse of the Crocs market and, with it, Crocs share price.

What remains is yet another warning to companies that want to re-produce something known and successful - prepare in advance and make sure you have solid footing before you embark on such a course of action, least you get embroiled in a time consuming and expensive lawsuit.

30 May 2008

Some, if not most, people in Canada have heard of the Canadian Broadcasting Corporation's television show called Dragon's Den.

Well, the next season of the show is almost upon us and they are looking for potential candidates. Being a big fan of the show, I can tell you that if you have a good product or service, a good pitch and some fortitude, you stand at least a descent change of actually getting funding from the venture capitalists on the panel. of course, the quid pro quo is some loss of control, but the upside is often a much needed injection of capital.

Check out the requirements for entering here. Apply! The worst thing that could happen is they say no.